Commission updates the SGEI Decision

Decision (EU) 2025/2630 updates the State aid framework for public service compensation for services of general economic interest (SGEI) under Article 106(2) TFEU and replaces the “2012 SGEI Decision”.

The new rules clarify compatibility conditions and expand exemptions from the prior notification requirement under Article 108(3) TFEU. The Decision raises the general notification exemption threshold to EUR 20 million in annual compensation per SGEI and introduces mandatory recording in a central register of aid exceeding EUR 1 million per undertaking and per SGEI from 1 January 2028 onwards.

The SGEI Decision is also applicable to critical medicines where supply-chain vulnerabilities exist and introduces a dedicated SGEI category for affordable housing, complementing existing social housing rules and requiring subsidised buildings to remain designated for at least 20 years to prevent speculation, while allowing compensation for both investment and necessary operating costs.

In transport, notification thresholds are updated to 500,000 annual passengers for airports and 400,000 for ports, with special treatment for outermost regions and island links, while land transport remains excluded from the Decision’s scope.